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Market Overview
Yesterday the USD/CAD pair was trading within the downward movement. During the European session this major pair started the bearish movement to the point 0.9920. Therefore during the New York session the USD/CAD pair moved to the new low at 0.9845 level.Today we can observe continuation of the bearish mood as price remains lower than the 0.9870 level.Today the USD/CAD pair is expected to decline. Also it is necessary to consider the data concerning the CAD Current Account,RMPI m/m, USD Unemployment Claims, Fed Chairman Bernanke Testifies, ISM Manufacturing PMI that could affect the rate of the pair.
Support and Resistance levels
(S3) 0.9786 (S2) 0.9829 (S1) 0.9856 (PP) 0.9899 (R1) 0.9942 (R2) 0.9969 (R3) 1.0012
USD/CAD Elliott Wave Analysis
The USD/CAD pair finished the wave (3) of the bigger wave 3 at 0.9845 and (4) wave at 0.9908. Presently we can observe the final wave 5. In accordance with our wave rules and taking into account that the wave 5 is equal to the wave 1, we can define the potential targets with the first Take Profit at 0.9824 (78.6% of the wave 1) and the second Take Profit at 0.9801 level (100% of the wave1). For stop loss we can use the end of the wave 4 at level 0.9908.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. Therefore, short position at levels 0.9860 with Stop Loss in the point 0.9908 Take Profit 1 at 0.9824 and Take Profit 2 at level 0.9808 are recommended.
